The European Investment Bank (EIB) has granted a loan of EUR 125m for the global research, development and innovation programme of Danish engineering company FLSmidth. The financing is dedicated to supporting R&D activities for the cement and minerals (mostly non-ferrous metals) processing industry.

EIB Vice-President Jonathan Taylor said: “We are happy to have signed this agreement with FLSmidth, which will bring substantial benefits to investments in research, development and innovation related to the cement processing and minerals processing industries. These are key considerations for the EIB’s involvement in supporting the development of innovative products, and more efficient production processes are also in the interest of the environment”.

The R&D programme supported by the EIB loan will be carried out within the EU, at the company’s Danish R&D centres in Dania (Mariager) and Valby (Copenhagen) over the period 2013-2016.

The EIB encourages private sector research and competitive innovation. As a result, it supports FLSmidth’s continuous research and technological development with special emphasis on the use of alternative fuels, reducing emissions and waste as well as improving heat recovery. Moreover, the programme focuses on decreasing power consumption, minimising water consumption, increasing plant capacity, availability and operating efficiency as well as minimising safety risks. These R&D activities financed by the EIB are likely to have positive spill-over effects on cement operations worldwide and on applications in other industries.

As the EIB also strongly promotes environmental protection, a significant share of the company’s R&D efforts targets the development of less environmentally invasive technologies, such as those lowering atmospheric emissions and reducing energy consumption.

The EIB loan will positively contribute to FLSmidth’s R&D spending over the business cycle by providing strong financial value added. The Bank represents a key source of funding for the borrower, enabling both the diversification of the company’s funding base and the extension of its maturity profile.